A stock priced under Rs. 20 engaged in Non-Banking Financial Activities hit the 5 percent upper circuit limit following the announcement of a Rs.100 crore investment in a media and entertainment sector. This move has sparked investor interest, boosting the stock’s momentum.
Price Movement
During Thursday’s trading session, shares of Amarnath Securities Ltd reached an intra-day high of Rs.14.00 per share, hitting the 5 percent upper circuit from its previous close of Rs.13.34 per share. Over the past five days, the stock has surged 20 percent.
New Developments
Amarnath Securities Ltd, a RBI-registered NBFC, is in the process of diversifying its portfolio to enhance shareholder wealth. The company has announced that it has received a fund aggregation mandate to invest Rs.100 crore in the media and entertainment sector, in collaboration with renowned author and filmmaker Dr. Deepak Singh.
This strategic investment marks Amarnath Securities’ foray into content creation, with a primary focus on feature films, web series, and high-quality entertainment content. The initiative is aligned with the company’s long-term vision and diversification strategy, aiming to tap into the rapidly growing media industry.
This milestone will allow Amarnath Securities to expand its portfolio into a dynamic and evolving sector. The investment will target high-quality content creation, with plans for further strategic investments based on the success of the projects and potential distribution partnerships.
Also read: Green energy stock in focus after promoter increases stake in the Co.
Earnings Report
According to its recent financial updates, Amarnath Securities Ltd reported consolidated revenue of Rs.10 lakhs in Q3 FY25, marking a 9 percent decrease from Rs.11 lakhs in Q3 FY24. Moreover, the company saw a fall in net profit to Rs.4 lakhs, falling 33 percent from Rs.6 lakhs in the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 6.36 percent and a Return on Equity (ROE) of 4.91 percent. Its Price-to-Earnings (P/E) ratio stands at 20.21, lower than the industry average of 26.23.
Business Overview
Amarnath Securities Ltd, established in 1994, is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI). The company specializes in both long-term and short-term investments across shares, mutual funds, debentures, and other securities. Additionally, it offers services such as corporate loans, margin funding, and trade financing.
Key Competitors
Amarnath Securities Ltd faces competition from several prominent players in the market, including Systematix Securities, Classic Global, Premium Capital Market & Investments, Peoples Investments, Hi-Klass Trading, Kanungo Financiers, and SW Investments.
These companies are key competitors in the financial services and investment sector, each vying for market share in areas such as securities trading, investment management, and financial consulting.
Written by – Siddesh S Raskar
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